Full TSP withdrawal sans penalty


Q. When I reach 59½, can I withdraw my full TSP without a penalty if I still work my federal job until I reach 62?

A. You may take an age-based, in-service withdrawal from your vested account balance once you reach age 59½. You may withdraw your entire vested account balance at that time. Once you reach age 59½, you are exempt from the early withdrawal penalty in any case. Use form TSP-75 to request the withdrawal.


About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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